ERM Exam Fall 2012/Spring 2013Important Exam Information: Exam Date and Time The exam duration is 4 hrs in one session. A read-through time of 15 minutes will be given prior to the start of the exam. At registration, candidates must select from one of six reading extensions. The readings for each extension appear at the end of this document. The study note package includes all extensions. Seventyfive percent of the exam points will come from the core readings and will be common for all candidates. The remaining twenty-five percent will be based on the case study and the selected extension. These questions may also draw on material from the core reading. Candidates may register online or with an application. Study notes are part of the required syllabus and are not available electronically but may be purchased through the online store. This document will guide candidates through the syllabus material and reinforce learning that is expected from each topic. It is not intended to duplicate or replace the study material, but rather to enhance it. Courseware is required reading and is in the Study Note package as ERM-50-12. The Introductory Study Note has a complete listing of all study notes as well as errata and other important information. This case study will also be provided with the examination. Candidates will not be allowed to bring their copy of the case study into the examination room. There is a single case study. However, within the case study are instructions as to which parts relate to which reading extension. Candidates should be sure to check the Updates page on the exam home page periodically for additional corrections or notices.

Reading Extensions

Exam Registration Order Study Notes

Courseware

Introductory Study Note

Case Study

Updates

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ERM Exam Fall 2012/Spring 2013The five topics that follow are the core learning objectives and readings for this examination. All candidates are responsible for this material Topic: Risk Categories and Identification Learning Objective: 1. The candidate will understand the types of risks faced by an entity and be able to identify and analyze these risks. Learning Outcomes: The candidate will be able to: a) b) c) Explain risk concepts and be able to apply risk definitions to different entities Explain risk taxonomy and its application to different frameworks Identify and analyze risks faced by an entity, including but not limited to market risk, currency risk, credit risk, spread risk, liquidity risk, interest rate risk , equity risk, hazard/insurance risk, inflationary risk, environmental risk, pricing risk, product risk, operational risk, project risk and strategic risk

ERM-100-12: A Common Risk Classification System for the Actuarial Profession - Kelliher, Wilmot, Vij and Klumpes (Background only)

Topic: Risk Modeling and Aggregation of Risks Learning Objective: 2. The candidate will understand the concepts of risk modeling and be able to evaluate and understand the importance of risk models Learning Outcomes: The candidate will be able to: a) Demonstrate how each of the financial risks faced by an entity can be amenable to quantitative analysis including an explanation of the advantages and disadvantages of various techniques such as Value at Risk (VaR), stochastic analysis, scenario analysis 2

ERM Exam Fall 2012/Spring 2013b) Evaluate how risks are correlated, and give examples of risks that are positively correlated and risks that are negatively correlated c) Analyze and evaluate risk aggregation techniques, including use of correlation, integrated risk distributions and copulas d) Apply and analyse scenario and stress testing in the risk measurement process e) Evaluate the theory and applications of extreme value theory in the measuring and...

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...Advantages, disadvantages and difficulties of applying IFRS in Azerbaijan Republic will be discussed in this section.
Advantages can be grouped in two parts: Benefits of implementation of IFRS to the country; and to the organizations.
“The main purpose of the of the state regulation of accounting in the Azerbaijan Republic is to provide the transparency of financial statements and development of the accounting in the country on the basis of international standards by developing and implementing the IFRS and NAS based on them for commercial organizations and the NAS based on International Public Sector Accounting Standards for non-commercial organizations.” By changing its accounting law, Azerbaijan admitted the significance of high quality financial reporting for the economical development. Acceptance of IFRS in Azerbaijan is helpful to economic growth and stable financial system. It will attract foreign investment to the country.
Another advantage of implementing the IFRS in Azerbaijan is international integration. That’s national companies which operate globally can compete with other companies in the world.
* Public organizations in Azerbaijan can compete fairly with the same type of financial statements.
* Stock exchange market is not developed in Azerbaijan. Applying IFRS in Azerbaijan would result in a more developed stock exchange market in Azerbaijan.
The...

...﻿ABSTRACT
First Adoption of International Financial Reporting Standards sets out the procedures that an entity must follow when it adopts IFRS for the first time as the basis for preparing its general purpose financial statements. An entity may be first adopter if, in the preceding year, it prepared IFRS financial statements for internal management use, as long as those IFRS financial statements were not made available to external parties such as investors or creditors.
In Malaysian data, IFRS standards are yet to be implemented. However, the results are of significant benefit for local standard setters as well as for other emerging countries that have similar capital market and institutional characteristics. More research could be conducted in other environments so that the impact of IFRS adoption in different environments can be revealed. Furthermore, additional studies can also consider other attributes of earnings quality such as earnings conservatism, predictability, comparability, persistence and timeliness.
INTRODUCTION
Mazars is a universal audit, accounting and discussing group employing more than 13,500 professionals in 71 countries through member firms. Mazars is the 11th largest accounting firm in the world. Mazars has a network of equivalent partners and joint ventures in a further 21 countries and is a founding member of the Praxity alliance, a...

...ifrs
International Financial Reporting Standards (IFRS) are a set of accounting standards developed by the International Accounting Standards Board (IASB) that is becoming the global standard for the preparation of public company financial statements. The goal of IFRS is to provide a global framework for how public companies prepare and disclose their financial statements. IFRS provides general guidance for the preparation of financial statements, rather than setting rules for industry-specific reporting. Having an international standard is especially important for large companies that have subsidiaries in different countries. Adopting a single set of world-wide standards will simplify accounting procedures by allowing a company to use one reporting language throughout. A single standard will also provide investors and auditors with a cohesive view of finances. (source: http://searchsecurity.techtarget.co.uk/definition/IFRS-International-Financial-Reporting-Standards)
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...5.13.205.60 Under the first approach in 5.13.205.40, management of Newco concludes that a business combination has occurred in which Newco is the acquirer (as the vehicle for the new shareholders). Accordingly, Newco applies IFRS 3 to the acquisition of both Y and Z.
5.13.205.70 Under the second approach in 5.13.205.40, the transaction is analysed as follows.
• It is a business combination amongst entities under common control.
• Newco chooses to apply book value accounting (see 5.13.50.20) - i.e. Newco elects to account for both Y and Z on the basis of book values.
5.13.205.80 Under the second approach, Newco chose to apply book value accounting; as a result, it was not necessary for Y or Z to be identified as the acquirer. However, if Newco had chosen to apply IFRS 3 accounting (see 5.13.50.20), and assuming that based on the facts and circumstances in this example Y was determined to be the acquirer, then acquisition accounting would have been applied to Z.5.13.200.120 Additionally, similar transactions should be accounted for on a similar basis. In Example 17B, this means that a single accounting policy would be applied to the transfer of the X group of companies to Newco. [IAS
5.13.210 LEGAL MERGERS AND AMALGAMATIONS
5.13.210.10 For purposes of the discussion that follows, a 'merger' is a transaction that involves the combination of two or more entities in which one of the legal entities survives and the other...

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BP IFRS
(Name)
(Institutional Affiliation)
Introduction
Impact of any change in the business environment is always felt on the processes and procedures into place. In the past few years, overall business environment has gone tremendous ups and downs. During the last two decades, multinational companies have grown like they had never done ever in the history. Nations like India and China which have great population and market potential but were earlier following socialistic trends had opened their gates for foreign direct investments. There were so many changes in the business environment in past twenty years that the whole arena seems to be entirely different from what is actually was some years back.
Due to such a ride in the business environment, companies and people from different parts of the world have come closer to each other. Their closeness is depicted by various examples like Coca Cola and Nike which are available almost everywhere in the world. Huge companies find different methods to enter in new markets to tap the potential of these markets at initial stages. This is the time when issues due to difference in statutory requirements and accounting standards and policies between different nations come into existence. For example, a company based in the United States has its branch office in China. It needs to show its investors the consolidated statements as per US GAAP so that US investors could easily...

...Financial Reporting Standards (IFRS) and U.S. General Accepted Accounting Principals (U.S. GAAP). Although we will not be required to adopt the IFRS in the foreseeable future, I recommend preparing steps according to the IFRS transition by developing an IFRS project plan and budget.
Difference between adoption and convergence of IFRS
A policy of adoption of the IFRS means that the Security Exchange Commission (SEC) will require all U.S. publicly listed companies to conform to IFRS. A requirement of convergence of the IFRS means that the U.S. Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) would work together to develop high quality and compatible accounting standards. The major objective of the IFRS convergence is establishment of uniform financial reporting standards worldwide. Currently, more than 120 countries either require or permit the use of IFRS. Since we transact part of our business in Canada, where the IFRS is the primary reporting language, I emphasize the significance of the IFRS in business negotiations with our foreign partners.
IFRS implications on Stalwart Industries Inc.
It is important to recognize that the adoption of the IFRS will affect not just our external financial reporting, but business...

...is known today, will cease to exist. In its place
will be a global standard encompassed by the International Financial Reporting Standards
(IFRS). This paper will provide a history of IFRS and discuss the timeline of convergence, along
with advantages and disadvantages. This paper will also address the future impact on accounting
education.
Keywords: IFRS, history, timeline, advantages, disadvantages, classroom impact
Preparing for international, Page 1
A HISTORY OF IFRS
In 1973, an organization known as the International Accounting Standards Committee
(IASC) was formed to address the need for standards that could be used by smaller nations in
creating their own accounting standards. This group was succeeded by the International
Accounting Standards Board (IASB) in 2001. The IASB is based in London and is the private
sector standard setting body for non-government and not-for-profit entities. All fifteen members
are selected based on technical skills and background from many different countries. At this
time, four of the members are American. Two of the sitting members are always part-time. The
IASB is primarily funded by fundraising activities. One of the challenges facing the conversion
to IFRS is ensuring that the IASB has a stable source of funds for the future. The primary
purpose of the IASB is to promulgate IFRS. The governance structure is very similar to the...